Brush Engineered Materials Reports Second Quarter Results Ahead of Expectations.Business Editors CLEVELAND--(BUSINESS WIRE)--July 25, 2002 Brush Engineered Materials Brush Engineered Materials Inc. is a multinational company specializing in high performance engineered materials emphasizing the qualities of strength, reliability, miniaturization and weight savings, thermal dissipation, electrical conductivity and reflectivity. Inc. (NYSE NYSE See: New York Stock Exchange :BW) today reported second quarter sales of $100.7 million, down 22% from 2001 second quarter sales of $128.5 million. Sales for the second quarter 2002 were, however, up 12% over first quarter 2002 sales of $89.6 million. After taking into consideration the impact of the substitution Substitution Arsinoë put her own son in place of Orestes; her son was killed and Orestes was saved. [Gk. Myth.: Zimmerman, 32] Barabbas robber freed in Christ’s stead. [N.T.: Matthew 27:15–18; Swed. Lit. of non-precious metals for precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. in products sold by the Company's William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Advanced Materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, Inc. business, quarterly sales have increased in the first two quarters of 2002 over the fourth quarter of 2001, reversing a trend of declining quarterly sales throughout 2001. Sales in the most recent quarter were adversely affected by the continued weakness in telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , the Company's largest market. Sales for the first half of $190.3 million were down 31% as compared to 2001 first half sales of $274.0 million. The net loss for the second quarter 2002 was $2.0 million, or $0.12 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. versus net income of $1.3 million, or $0.08 per share diluted for the same period last year. However, the second quarter loss represents an improvement of $1.8 million, or $0.11 per share diluted over the first quarter loss as a result of increased sales volume and the continued benefits of the cost reduction initiatives implemented during the second half of 2001. The net loss for the first half of 2002 was $5.9 million, or $0.36 per share diluted versus net income of $7.5 million, or $0.45 per share diluted for the same period last year. The Company's cash flow and debt continue to improve. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $5.6 million in the first half of 2002. Balance sheet debt at the end of the second quarter of 2002 was down $5.3 million from December December: see month. 31, 2001. Capital expenditures have been held to $2.3 million year to date versus $15.6 million for the same period last year. BUSINESS SEGMENT REPORTING Business segment reporting Reporting the results of the separate divisions or subsidiaries of a business. Metal Systems Group The Metal Systems Group consists of Alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. Products, Technical Materials, Inc. (TMI TMI Too Much Information TMI Three Mile Island TMI TRMM Microwave Imager TMI Transactions on Medical Imaging TMI Texas Military Institute TMI Teen Missions International TMI Tauber Manufacturing Institute ) and Beryllium beryllium (bərĭl`ēəm) [from beryl ], metallic chemical element; symbol Be; at. no. 4; at. wt. 9.01218; m.p. about 1,278°C;; b.p. 2,970°C; (estimated); sp. gr. 1.85 at 20°C;; valence +2. Products. The Metal Systems Group's second quarter 2002 sales were $63.5 million, down 24% from 2001 second quarter sales of $83.4 million. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales were $119.5 million versus $182.0 million for the first half of 2001. Compared to the first quarter of 2002, sales in the second quarter for this group were up by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14%. Second quarter 2002 operating profit/(loss) for the Metal Systems Group was ($5.1 million) versus ($1.6 million) for the same period last year. Year-to-date 2002 operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was ($13.6 million) versus $4.9 million for the first half of 2001. Alloy Products' 2002 second quarter sales of $41.0 million were down 35% from 2001 second quarter sales of $63.0 million. However, second quarter sales were up 7% over the first quarter 2002 sales of $38.3 million, marking the second consecutive quarterly increase since the sales decline occurred during 2001. Alloy Products' sales for the first six months of $79.3 million were 41% lower than the same period last year. Alloy continues to experience weakness in the telecommunications market. The increase in sales for each of the first two quarters of 2002 as compared to the fourth quarter of 2001 is due to stronger automotive electronics and a slow recovery of computer and consumer electronics product applications. Alloy sales may be adversely affected in the third quarter depending upon the impact of customer manufacturing maintenance shutdowns occurring both domestically and overseas. Alloy Products continues to make progress in lowering working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and in reducing manufacturing and overhead costs overhead costs see fixed costs. . TMI's 2002 second quarter sales of $12.4 million were approximately flat with second quarter sales of 2001. Year-to-date 2002 sales of $23.9 million were down 27% from the same period last year. TMI has been experiencing strong sales from the automotive electronics market and after bottoming out during the third quarter of 2001 has had three consecutive quarterly increases in sales. Second quarter 2002 sales were up approximately 8% over first quarter 2002 sales. Beryllium Products' second quarter sales of $10.1 million and year-to-date sales of $16.2 million were up 30% and 11% respectively over the same period last year. This growth, which should remain strong through the remainder of the year, is driven primarily by government releases for defense applications. Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. Group The Microelectronics Group includes Williams Advanced Materials Inc. (WAM WAM - Intermediate language for compiled Prolog, used by the Warren Abstract Machine. "An Abstract Prolog Instruction Set", D.H.D. Warren, TR 309, SRI 1983. ) and Electronic Products (Electronic Products includes Zentrix Zentrix is a 3D-CG Chinese animated TV series directed by Tony Tong and Felix Ip under the Hong Kong based company Imagi Animation Studios. The original story was written by Tony Tang, Benny Chow, Felix Ip and Francis Kao. Technologies Inc. and Brush brush a bushy tail in dogs. brush Cytology A disposible with synthetic 'whiskers', used to scrape cells from mucosal surfaces. See Endocervical brush. Ceramic This article is about ceramic materials. For the fine art, see Ceramic art. The word ceramic is derived from the Greek word κεραμικός (keramikos). Products Inc.). The Microelectronics Group's sales for the second quarter were $34.5 million, down 18% as compared to 2001 second quarter sales of $42.3 million. Year-to-date 2002 sales of $68.0 million were 24% lower than the year-to-date 2001 sales of $89.2 million. Operating profit was $1.5 million for the second quarter and $3.7 million year to date up 59% and 10% respectively over the same periods last year. WAM's sales were $27.1 million and $53.0 million for the second quarter 2002 and year to date versus $32.7 million and $68.0 million for the same periods last year. WAM's value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: sales (which are sales less the cost of metal) have continued to remain strong through the first half of this year. WAM has been experiencing the substitution of their non-precious metal products for their precious metal products. Since precious metal prices are a pass through to the customer, value-added sales are not affected. It is anticipated that WAM's value-added sales should remain strong for the remainder of the year driven primarily by optical media and magnetic head product applications. Electronic Products' 2002 second quarter sales were $7.3 million and year-to-date sales were $15.0 million versus 2001 second quarter sales of $9.6 million and year-to-date sales of $21.2 million. Electronic Products' sales have continued to be negatively impacted by the weak wireless telecommunications market. Outlook While the demand for the telecommunications and computer markets bottomed for the Company in the fourth quarter of 2001, growth in these markets in 2002 at best remains sluggish and visibility regarding lead times for orders still remains very short. It also appears that the economic recovery in the manufacturing sector continues to be pushed out, affecting other markets including semiconductors, oil and gas, aerospace and electronic appliances. Therefore, it is a difficult environment to forecast sales and earnings growth over any extended period of time. Assuming a continued sluggish recovery through the remainder of the third quarter coupled with customer plant maintenance shutdowns it is currently anticipated that sales for the third quarter of 2002 will be flat to down 5% from second quarter 2002 sales with an upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside or downside Downside The dollar amount by which the market or a stock has the potential to fall. Notes: You might hear someone say that the downside on stock XYZ is $10. What that means is that the stock could fall by this amount if things got bad. in the 5% range. The Company will continue to control costs and focus on improving manufacturing performance. Additional cost savings measures may be considered to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. any anticipated fall off
in sales growth.Chairman's Comments Chairman, President and Chief Executive Officer, Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. D. Harnett, stated " I am encouraged with the sales growth we experienced during the second quarter. Our cost and manufacturing initiatives implemented last year are beginning to improve our bottom line even at these lower sales volumes. "We will continue to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution our manufacturing initiatives, reduce costs where appropriate and focus our marketing efforts to grow sales. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Any forward-looking statements in this announcement, including those in the Outlook Section, are based on current expectations. The Company's actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include: the global and domestic economy, the condition of the markets which the Company serves, whether defined geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge or by segment, with the major market segments being telecommunications and computer, optical media, automotive electronics, industrial components, aerospace and defense, and appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. ; changes in product mix and the financial condition of particular customers; the Company's success in implementing its strategic plans and the timely and successful completion of pending capital expansion projects; the availability of adequate lines of credit and the associated interest rates; other financial factors, including tax rates, exchange rates, energy costs and the cost and availability of insurance; changes in government regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. and the enactment of new legislation that impacts the Company's obligations; and, the conclusion of pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. matters in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Company's expectation that there will be no material adverse effects and other matters referred to in the Company's Securities and Exchange Commission filings. Brush Engineered Materials Inc., is headquartered in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. . The Company and its subsidiaries supply worldwide markets with beryllium products, alloy products, electronic products, precious metal products, and engineered material systems.
Brush Engineered Materials Inc.
Digest of Earnings
June 28, 2002
2002 2001
------------- -------------
Second Quarter 2002
Net Sales $100,749,000 $128,457,000
Net (Loss) Income ($2,049,000) $1,275,000
Share Earnings - Basic ($0.12) $0.08
Average Shares - Basic 16,556,439 16,508,248
Share Earnings - Diluted ($0.12) $0.08
Average Shares - Diluted 16,556,439 16,690,938
Year-to-date
Net Sales $190,331,000 $273,980,000
Net (Loss) Income ($5,883,000) $7,481,000
Share Earnings - Basic ($0.36) $0.45
Average Shares - Basic 16,555,553 16,487,575
Share Earnings - Diluted ($0.36) $0.45
Average Shares - Diluted 16,555,553 16,683,572
Consolidated Balance Sheets
June 28, Dec. 31,
(Dollars in thousands) 2002 2001
----------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $3,917 $7,014
Accounts receivable 61,682 54,616
Inventories 102,671 109,110
Prepaid expenses 6,428 9,910
Deferred income taxes 41,722 38,672
--------- ---------
Total Current Assets 216,420 219,322
Other Assets 30,089 33,224
Property, Plant and Equipment 473,058 469,663
Less allowances for depreciation,
depletion and impairment 309,270 298,367
--------- ---------
163,788 171,296
--------- ---------
$410,297 $423,842
========= =========
Liabilities and Shareholders' Equity
Current Liabilities
Short-term debt $20,301 $27,582
Accounts payable 21,110 13,869
Other liabilities and accrued
items 32,513 34,211
Dividends payable 0 0
Income taxes 3,930 3,917
--------- ---------
Total Current Liabilities 77,854 79,578
Other Long-Term Liabilities 18,774 22,921
Retirement and Post-employment Benefits 39,180 39,552
Long-term Debt 49,219 47,251
Deferred Income Taxes 20,555 20,189
Shareholders' Equity 204,715 214,350
--------- ---------
$410,297 $423,842
========= =========
See notes to consolidated financial statements.
Consolidated Statements of Income
(Unaudited)
(Dollars in
thousands except Second Quarter Ended First Half Ended
share and per share June 28, June 29, June 28, June 29,
amounts) 2002 2001 2002 2001
---------------------------------------------------------------------
Net sales $ 100,749 $ 128,457 $ 190,331 $ 273,980
Cost of sales 85,679 104,881 165,007 216,369
----------- ----------- ----------- -----------
Gross Margin 15,070 23,576 25,324 57,611
Selling, general
and administrative
expenses 16,907 18,770 32,147 40,276
Research and
development
expenses 1,101 1,867 2,175 3,559
Other-net (373) 226 (932) 1,028
----------- ----------- ----------- -----------
Operating Profit
(Loss) (2,565) 2,713 (8,066) 12,748
Interest expense 767 852 1,500 1,827
----------- ----------- ----------- -----------
Income (Loss) before
income taxes (3,332) 1,861 (9,566) 10,921
Income taxes (1,283) 586 (3,683) 3,440
----------- ----------- ----------- -----------
Net Income (Loss) $ (2,049) $ 1,275 $ (5,883) $ 7,481
=========== =========== =========== ===========
Per Share of Common
Stock: Basic $ (0.12) $ 0.08 $ (0.36) $ 0.45
Weighted average
number of common
shares outstanding 16,556,439 16,508,248 16,555,553 16,487,575
Per Share of Common
Stock: Diluted $ (0.12) $ 0.08 $ (0.36) $ 0.45
Weighted average
number of common
shares outstanding 16,556,439 16,690,938 16,555,553 16,683,572
Cash dividends per
common share $ - $ 0.12 $ - $ 0.24
See notes to consolidated financial statements.
Consolidated Statements of Cash Flows
First Half Ended
June 28, June 29
(Dollars in thousands) 2002 2001
----------------------------------------------------------------------
Net (Loss) Income ($5,883) $7,481
Adjustments to Reconcile Net Income to Net Cash
Provided From Operating Activities:
Depreciation, depletion and amortization 10,415 11,018
Decrease (Increase) in accounts receivable (5,946) 1,984
Decrease (Increase) in inventory 7,897 (14,959)
Decrease (Increase) in prepaid and other current
assets 1,082 (116)
Increase (Decrease) in accounts payable and
accrued expenses 2,297 (9,987)
Increase (Decrease) in interest and taxes payable (826) 3,078
Increase (Decrease) in deferred income taxes (227) (135)
Increase (Decrease) in other long-term
liabilities (4,660) 2,691
Other - net 1,444 746
-------- --------
Net Cash Provided From (Used
in) Operating Activities 5,593 1,801
Cash Flows from Investing Activities:
Payments for purchase of property, plant and
equipment (2,299) (15,559)
Payments for mine development - (281)
Proceeds from sale of property, plant and
equipment 140 -
-------- --------
Net Cash Provided From (Used
in) Investing Activities (2,159) (15,840)
Cash Flows from Financing Activities:
Proceeds from issuance/ (repayment of) short-term
debt (8,307) 8,437
Proceeds from issuance of long-term debt 12,000 15,500
Repayment of long-term debt (10,000) (7,500)
Issuance of Common Stock under stock option plans - 1,753
Purchase of Common Stock for treasury - -
Payments of dividends - (3,974)
-------- --------
Net Cash Provided From (Used
in) Financing Activities (6,307) 14,216
Effects of Exchange Rate Changes (224) 71
-------- --------
Net Change in Cash and
Cash Equivalents (3,097) 248
Cash and Cash Equivalents
at Beginning of Period 7,014 4,314
-------- --------
Cash and Cash Equivalents at
End of Period 3,917 4,562
======== ========
See notes to consolidated financial statements.
Notes to Consolidated Financial Statements
(Unaudited)
Note D - Segment Reporting
Metal Micro- Total All
(Dollars in Systems Electronics Segments Other Total
thousands)
---------- ------------ ---------- -------- ----------
Second
Quarter
2002
-------------
Revenues from
external
customers $ 63,537 $ 34,481 $ 98,018 $ 2,731 $ 100,749
Intersegment
revenues 768 474 1,242 3,743 4,985
Profit (loss)
before
interest and
taxes (5,074) 1,467 (3,607) 1,042 (2,565)
Second
Quarter
2001
-------------
Revenues from
external
customers $ 83,401 $ 42,301 $ 125,702 $ 2,755 $ 128,457
Intersegment
revenues 352 472 824 5,539 6,363
Profit (loss)
before
interest and
taxes (1,614) 921 (693) 3,406 2,713
First Six
Months 2002
-------------
Revenues from
external
customers $ 119,454 $ 68,026 $ 187,480 $ 2,851 $ 190,331
Intersegment
revenues 1,367 957 2,324 6,632 8,956
Profit (loss)
before
interest and
taxes (13,599) 3,669 (9,930) 1,864 (8,066)
First Six
Months 2001
-------------
Revenues from
external
customers $ 182,030 $ 89,196 $ 271,226 $ 2,754 $ 273,980
Intersegment
revenues 1,938 1,301 3,239 10,386 13,625
Profit (loss)
before
interest and
taxes 4,946 3,340 8,286 4,462 12,748
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion